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CC 03-30-1998
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CC 03-30-1998
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<br />ARDEN HILLS CITY COUNCIL - MARCH 30. 1998 <br /> <br />21 <br /> <br />. <br /> <br />Mr. Post stated the City does not have a cafeteria program and commented on the difficulty of <br />finding a provider that would support the employee "opting out" option since they do expect <br />100% participation, <br /> <br />Councilmember Aplikowski suggested the Council set a maximum contribution and allow <br />employees to use it, in some fashion, for health benefits without the alternative of getting the <br />funds as taxable income. <br /> <br />Councilmember Malone stated he supports providing a fair package to both married and <br />unmarried employees and proceeding in the direction being suggested. <br /> <br />Councilmember Hicks asked if the life insurance policy builds cash value. Mr. Post stated that it <br />does not and is strictly term insurance. Councilmember Hicks stated if they have sufficient life <br />insurance coverage they are still gaining comparable benefits. <br /> <br />Councilmember Aplikowski noted it is families that need the extra coverage as opposed to <br />singles but the program needs to be fair to all. <br /> <br />Mayor Probst stated if the single coverage cost is $160 and family coverage is beyond what is <br />being paid then the single coverage employee can designate the remainder of the contribution <br />towards life insurance coverage. <br /> <br />_ In response to Councilmember I-licks, Mr. Post stated there are eight single family coverage <br />employees, six family coverage employees, and one COBRA retired employee. He noted that <br />staff needs Council direction to calculate employee deductions for the April pay checks. <br /> <br />Councilmember Malone stated he believes it was agreed that the contribution was not to exceed <br />$320. <br /> <br />Councilmember Aplikowski stated she supports offering the ability to the employee to use the <br />$320 contribution as they see fit for health and dental insurance coverage. She suggested that <br />amount be considered with the issue further discussed at an upcoming meeting. <br /> <br />Mr. Post advised that the $320 level of contribution is the same as with other bargaining units. <br /> <br />Mayor Probst stated he supports making the net benefit to employees equivalent whether single <br />or married. Councilmember Malone stated his concurrence and noted that with a cafeteria plan <br />the ability exists to deduct a portion of your salary for child care and other qualified expenses <br />but, if it is not used, it is lost at the end of the year. <br /> <br />Mr. Probst stated the intent is not to pay taxes on that portion of the wage. <br /> <br />Council consensus was reached to direct staff to proceed with $320 as the available contribution <br />and direct staff to research the options to equalize the benefit package for single and married <br />employees. <br /> <br />. <br />
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